Sosandar PLC (AIM: SOS), the online women's fashion brand, is pleased to announce its results for the year ended 31 March 2018.
- Revenue increased 387% to £1.35m (2017: £0.28m)
o Like-for-like sales for the six months to March 2018 up 268% against the prior year
- Gross profit increased 532% to £0.66m (2017: £0.10m)
- Gross margin improved 11.6 percentage points to 49.4% (2017: 37.8%)
- Underlying EBITDA loss of £3.1m, reflecting the increased investment in customer acquisition, product imagery and people to deliver growth.
- Year-end cash balance of £4.6m
- Reverse takeover of Orogen plc in November 2017, start of trading on AIM and fundraise of £5.3m
- Increased product range by over 7x
- Order growth of 353% to 31,732 orders
- Customer database grew 695% to 54,196
- Grew Facebook and Instagram followings over 2.5x and 9x respectively
- Conversion rate increased by 87bps to 2.16%
- Bolstered the Board with the appointment of Adam Reynolds as a Non-Executive Director and Mark Collingbourne as Executive Finance Director
Appointed Andrew Booth as Non-executive director
Performance against KPIs
Year ended 31 March 2018
Period ended 31 March 2017*
Number of orders
As at 31 March 2018
As at 31 March 2017
* Representing 7 months of trading from Sosandar's launch in September 2016.
Ali Hall and Julie Lavington, Co-CEOs, commented: "We are very pleased to be reporting on a year of very strong financial and operational progress. Our increased scale, partially facilitated by our listing on AIM in November 2017, has supported us in making a greater variety of products, more frequently, and in buying significantly higher levels of stock.
A key focus for the team has been building awareness of the brand and customer acquisition, and we are proud to report that through implementing a strategic campaign across a multitude of channels we have been able to substantially grow our customer database. Our products are what makes Sosandar unique, and our 'test and repeat' model has delivered well. We've also seen a growing conversion rate and average order value.
The momentum reported in March has continued into the new financial year surpassing March performance, with business continuing to progressively increase revenues with quarter to June 18 revenue up 73% vs quarter to March 18. This has been achieved whilst also driving cost efficiencies, especially with respect to acquiring new customers which is down 14% in the same period, whilst the number of new customers acquired has increased by 97%.
Our strategy is to continue to broaden the product range to give more choice to our customers, buy deeper and engage in a more diversified marketing strategy. We remain focused on data-driven efficiencies and digital investment to improve our customers' journeys. We believe that the results to date demonstrate the considerable potential and opportunity in this underserved market and are testament to the brand's growing momentum. Sosandar's unique offering and market positioning puts us in a strong position to achieve another year of strong growth in 2018/19."